Title: Negative Rebalance Borrowers Based on LTV Position
Proposed Rebalancing Queue: At the time of rebalancing, a group of the highest LTV Borrowers are rebalanced.
As discussed here:
Here is how it could work:
Group A
- Debt = 1,000 bnUSD
- LTV = 30%
Group B
- Debt = 2,000 bnUSD
- LTV = 40%
Group C
- Debt = 1,000 bnUSD
- LTV = 50%
A 500 bnUSD rebalancing comes in.
- Group C has 500 bnUSD of their debt repaid through rebalance, leaving them with Debt = 500 bnUSD and LTV=33%
- Groups B and C have nothing happen.
Next a 500 bnUSD rebalancing comes in.
- Group B has 500 bnUSD of their debt repaid through rebalance, leaving them with Debt = 1500 bnUSD and LTV=33%
- Groups A and C have nothing happen.
- Groups B and C combine to become group B that share a Debt = 2000 bnUSD and LTV = 33%
Next a 500 bnUSD rebalancing comes in.
- Group B has 500 bnUSD of their debt repaid through rebalance, leaving them with Debt = 1500 bnUSD and LTV = 27%
- Groups A has nothing happen.
Please discuss and make suggestions. Letās get this right.